Airforce

IAF Set To Finalise Rs 8,000 Crore Deal With Israel For Six Mid-Air Refuelling Aircraft

India is set to expand its aerial reach as the Air Force moves forward with a major partnership with Israel Aircraft Industries to boost refuelling capability and strengthen indigenous defence efforts.
IAF Set To Finalise Rs 8,000 Crore Deal With Israel For Six Mid-Air Refuelling Aircraft

The Indian Air Force is close to finalising a deal with Israel Aircraft Industries for Boeing 767 mid-air refuelling aircraft, a move expected to enhance air combat readiness and operational reach.

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  • Published October 29, 2025 11:52 am
  • Last Updated October 29, 2025

The Indian Air Force (IAF) is close to finalising a major Rs 8,000 crore deal with Israel Aircraft Industries (IAI) to acquire six mid-air refuelling aircraft.

The Israeli government-owned aerospace major has emerged as the single vendor for the long-awaited project after years of evaluation and competitive bidding, according to reports citing defence sources.

What will IAI be required to do under the agreement?

Under the proposed agreement, IAI will convert six pre-owned Boeing 767 commercial airliners into advanced aerial refuelling tankers and deliver them to the IAF.

The company has also agreed to meet India’s requirement of 30 percent indigenous content through offsets, aligning with the ‘Make in India’ initiative aimed at boosting domestic defence manufacturing.

What happened in the tender for the refueller aircraft?

The competition for the contract, which began several years ago, initially included Russian and European firms. However, IAI remained the only contender able to fulfil all technical and operational requirements, including the localisation clause for refurbished aircraft.

Currently, the IAF operates a fleet of six Russian-origin Ilyushin Il-78 mid-air refuelling aircraft based at Agra, which play a crucial role in extending the operational range of India’s fighter jets across the Air Force and Navy.

Why is the midair refueller required by the IAF?

The acquisition of additional refuelling aircraft is considered essential to support India’s expanding fleet of modern fighters such as the Rafale and Tejas Mk1A. Over the past 15 years, several attempts to procure new tankers have faced delays due to financial and technical hurdles.

IAF officials have stressed that expanding the tanker fleet is vital for sustained air operations, especially as India phases out older aircraft and enhances its long-range strike capabilities.

The deal with IAI is expected to significantly strengthen the country’s air combat readiness and operational reach.

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RNA Desk

RNA Desk is the collective editorial voice of RNA, delivering authoritative news and analysis on defence and strategic affairs. Backed by deep domain expertise, it reflects the work of seasoned editors committed to credible, impactful reporting.

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